The World’s Most Liveable City

“Despite the technological breakthroughs that have caused the death of distance, it turns out

that the world isn’t flat, it’s paved. The city has triumphed”

Glaeser, 2010

Liveable for who? Largest New Zealand regions

1935 1945 1955 1965 1975 1985 1995 2005 2015 2025 2035 -

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

AucklandCanterburyWellingtonWaikatoOtagoPo

pula

tion

Source: Statistics New Zealand

An additional person every …

Auckland Christchurch Wellington Hamilton Dunedin 0

50

100

150

200

250

17

63

99 103

221

Min

utes

Source: Statistics New Zealand, Auckland Council calculations

The lure of Auckland . . . Ap

r-05

Apr-

06

Apr-

07

Apr-

08

Apr-

09

Apr-

10

Apr-

11

Apr-

12

-15000

-10000

-5000

0

5000

10000

15000

Auckland Rest of New Zealand

Annu

al n

et m

igra

tion

flow

Source: Statistics New Zealand

Mercer Liveability Survey

Regional GDP per capita in Asia-Pacific region To

kyo

Aust

ralia

n Ca

pita

l Ter

ritor

y (A

ct)

Wes

tern

Aus

tral

iaCh

ungc

heon

gnam

-Do

Osa

ka

Shig

aHi

rosh

ima

Qee

nsla

nd

Fuku

iYa

mag

uchi

Jeol

lana

m-D

o

Kyot

oSo

uth

Aust

ralia

Niig

ata

Gum

ma

Fuku

oka

Kaga

wa

Tasm

ania

Yam

agat

a

Saga

Hyog

oAk

ita

Wak

ayam

a

Iwat

eTo

kush

ima

Aom

ori

Kago

shim

aCh

ungc

heon

gbuk

-Do

Miy

azak

i

Naga

saki

Gang

won

-Do

Gyeo

nggi

-Do

Oki

naw

a

Jeol

labu

k-Do

Busa

n

Daej

eon

0

10

20

30

40

50

60

GDP

per c

apita

(PPP

)

Source: OECD Regions at a Glance 2011

North Island = 56th

South Island = 64th

The GFC and GDP per capitaAuckland real GDP per capita

Source: Statistics NZ, Infometrics

Year to Sep. 2012:

Auckland GDP per capita = $50,200$7,100 gap

Sep-

01

Sep-

02

Sep-

03

Sep-

04

Sep-

05

Sep-

06

Sep-

07

Sep-

08

Sep-

09

Sep-

10

Sep-

11

Sep-

12

$40,000

$45,000

$50,000

$55,000

$60,000

AKL GDP per capita

Annu

al re

al A

KL G

DP p

er ca

pita

($20

12)

Our economic targets:

- A 5% PLUS INCREASE IN REAL GDP

A 6% PLUS INCREASE IN REGIONAL EXPORTS

A 5% PLUS INCREASE IN REAL GDP

A 2% PLUS INCREASE IN PRODUCTIVITY GROWTH

Unemployment rateAuckland & New Zealand

Source: Statistics New Zealand

Year to Dec. 2012:

Auckland 7.7%

RoNZ 6.5%

NZ Treasury forecasts:

2013 5.8%

2014 5.3%

2015 5.0%

2016 4.7%

Dec-02

May-03

Oct-03

Mar-04

Aug-04Jan

-05Jun-05

Nov-05

Apr-06Sep

-06Feb

-07Jul-0

7Dec-

07

May-08

Oct-08

Mar-09

Aug-09Jan

-10Jun-10

Nov-10

Apr-11Sep

-11Feb

-12Jul-1

2Dec-

120.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Auckland New Zealand

Mov

ing

Annu

al A

vera

ge

Unemployment by qualification Auckland, annual average

Source: Statistics New Zealand

Dec-

02

Dec-

03

Dec-

04

Dec-

05

Dec-

06

Dec-

07

Dec-

08

Dec-

09

Dec-

10

Dec-

11

Dec-

12

0%

10%

20%

30%

40%

50%

No School qualification Total

Public services and transport criteria

International competitiveness

The 2010/11 Global Competitiveness Report highlighted inadequate infrastructure as the

biggest problem facing businesses in New Zealand

Aotea Station

Under Albert St between Victoria & Wellesley streets

18 metres underground

Entries on Wellesley & Victoria streets

Newton Station

Under Symonds St between Newton Rd & Mt Eden Rd

43 metres underground

Entries on Mt Eden Rd & Symonds St

K Road Station

Under Pitt St between Beresford Square & K Rd

35 metres underground

Entry on Beresford Square

City Rail Link Stations & Parnell

Parnell Station

Near Mainline Steam

Opens Sept. 2012

Access to Parnell & University

City Rail Link Transport Benefits

How short sighted are we?

United Kingdom vs New Zealand approach

• Long lived projects dramatically more viable

0

50

100

150

200

250

300

1 6 11 16 21 26 31 36 41 46 51 56 61

Year (after 2011)

$m, d

iscou

nted

UK approach Standard NZ appraisal

0

50

100

150

200

250

300

0 5 10 15 20 25 30 35 40 45 50 55 60

Year (after 2011)

$m, d

iscou

nted

Congestion

Auckland Productivity PremiumThe geography of economic activity matters

Auckland Region 65,375$ Relative to rest of NZ 44%

Auckland urban 68,435$ Relative to rest of NZ 51%

Auckland CBD 106,873$ Relative to rest of NZ 139%

Rest of New Zealand 45,440$ Source: MOTU

“A material measure of wellbeing such as GDP … is an insufficient index for measuring aggregate wellbeing”

Grimes, 2012

“The top 1 percent gained 93 percent of the additional income created in the country in

2010”

Joseph Stiglitz, 2012

• Wealth/Jobs• Transport• Environment• Inequality• Sustainable future